U.S. Auto Suppliers Also Asking for Handouts. Who’s Next, the Ad Agencies?

U.S. auto suppliers are no doubt under financial duress because of decreased auto production from the Big 3. So they’re planning to follow in the Big 3’s footsteps by asking for federal aid. As I mentioned before when discussing the merits of bailing out the automakers, one major benefit of the $17.4B package is that it will help those connected to the auto industry. This should, therefore, include the auto suppliers as well. Where do we draw the line at who receives aid? The $17.4B is supposed to indirectly help sustain the industries who rely on U.S. auto production. I propose that the ad agencies who depend upon large broadcast production budgets ask for aid as well. Since GM must cut over $600 million in marketing costs over 4 years, they are expected to consolidate their accounts into a single ad agency holding company. This may not put as many people out of work as a collapse of the U.S. auto industry would, but it would certainly put a damper on agency Christmas parties and per diems across the country.